Dallas Fed Survey Shows Economic Decline

FINANCE
Dallas Fed Survey Shows Economic Decline

The Dallas Fed’s latest manufacturing survey shows a sharp decline in sentiment, with business leaders citing Trump’s tariff policies as a top concern. The production index plunged 21 points to -9.1, while business activity and new orders also fell into negative territory. Hiring remained flat, and work hours dropped to their lowest since 2020.

Despite many tariffs not yet taking effect, executives fear trade disruptions. Trump has imposed tariffs on China, with Mexico, Canada, and the EU set to face additional levies. Executives in chemical, electronics, and transportation flagged higher costs and lost business opportunities due to trade uncertainties.

The broader economic picture also looks weaker. The Atlanta Fed’s GDP tracker now projects a 1.5% contraction for Q1. Meanwhile, consumer spending declined, jobless claims rose, and home sales hit record lows. While concerns grow, economists see tariffs and inflation as temporary economic shocks rather than signs of an imminent recession.

CRYPTO
Trump Pushes U.S. Crypto Reserve Plan

Crypto markets surged Sunday after President Trump reaffirmed his plan for a U.S. crypto strategic reserve, including Bitcoin, Ether, Solana, XRP, and Cardano. Trump claimed the reserve would boost the crypto industry after what he called years of attacks under the Biden administration.

Bitcoin jumped 9% to $93,000, while Ether rose 11% to $2,500. Solana climbed 20%, XRP surged 30%, and Cardano skyrocketed 60%. The rally follows weeks of losses, with Bitcoin dropping below $80,000 last week due to broader market shifts and the Bybit exchange hack.

Trump first proposed a national Bitcoin reserve at the Bitcoin Conference last July, a move that excited crypto investors. Analysts suggest the government could build the reserve using its 180,000+ seized Bitcoin, worth about $18 billion.

Trump will host the first-ever White House Crypto Summit on Friday, led by David Sacks, bringing together top industry executives and investors.

TECH
Super Micro Execs Sell Millions in Stock

Super Micro Computer cofounder Sara Chiu-Chu Liu Liang sold all her personal shares, offloading 46,293 shares worth $2.3 million, just days after the company regained Nasdaq compliance by filing its delinquent financial reports. Senior VP George Kao also sold 71,720 shares for $3.6 million, while both executives received restricted stock units set to vest over four years.

Sara Liang, wife of CEO Charles Liang, still indirectly holds 67 million shares through him. Meanwhile, Charles Liang was granted 1 million stock options after meeting revenue targets, part of a 5-million-share award from 2023.

Super Micro, closely tied to Nvidia, saw a 3,000% stock surge before facing scrutiny over accounting concerns, triggering SEC and DOJ investigations. The company blames auditor EY for reporting delays and aims for $40 billion revenue in 2025. CEO Liang says financial compliance marks a turning point for growth and stability.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.